Copper processing is an important part of non-ferrous metal industry in China.After years of rapid development, China country has become the world's largest copper producer and consumer, and its comprehensive strength has been significantly enhanced. In recent years, in the face of the complex and changeable domestic and foreign macroeconomic situation and development environment, the copper processing industry has actively promoted the transformation of the mode, the adjustment of the structure, and the transformation, and maintained the sustained and rapid development of the industry. At present, the processing capacity of the copper industry has been continuously improved, the application field has been continuously expanded, and the level of localization has been continuously improved, and the entire industry has shown a good momentum of vigorous development. But at the same time, it should be noted that there are still problems such as serious product homogeneity and low product added value in the whole industry, and the tasks of transformation, upgrading and leap-forward development are urgent and arduous.

At present, a new round of scientific and technological revolution and industrial revolution has formed a historic intersection with our country's accelerated transformation of economic development mode, and the pattern of international industrial division of labor is being reshaped. In order to better seize this important opportunity, the State Council issued "Made in China 2025", which for the first time drew a grand blueprint for building a strong manufacturing country from the national strategic level, and proposed ten key areas and five major projects, among which new materials are the key to promote. one of the fields. At the end of last year, the State Council established a national leading group for the development of new materials industry consisting of 23 departments, with Vice Premier Ma Kai serving as the group leader. At the beginning of this year, the National Expert Advisory Committee for the Development of New Materials Industry was established. The State Council has deployed work priorities in terms of strengthening overall coordination, focusing on development priorities, improving innovation capabilities, improving platform construction, expanding application fields, and creating a development environment. Both the central and local governments are making every effort to promote the rapid development of the new material industry.

In 2016, the State Council issued the Guiding Opinions on Creating a Good Market Environment to Promote the Structural Adjustment of the Nonferrous Metal Industry to Promote Transformation and Increase Efficiency, which listed "precision electronic copper strips, copper-nickel alloy sheets and strips, and high-performance copper foils" as the key basic materials focusing on development . The copper processing industry should seize the once-in-a-lifetime opportunity, accelerate technological innovation and structural adjustment in accordance with the overall requirements of the goal of building a manufacturing power  country, and actively cooperate with new energy vehicles, electronics and other fields in addition to maintaining the stable development of traditional electric power, household appliances and other fields to develop Emerging industries use copper materials to increase the added value of products and seize the high-end market.

Basic overview of China's copper industry

In 2016, there were 274 copper mining enterprises in in China, with total assets of 104 billion yuan, debt ratio of 58%, and main business income of 66.8 billion yuan; 209 copper smelting enterprises, total assets of 466.8 billion yuan, debt ratio of 63.8%, and a main business income of 850.6 billion yuan; there are 1,302 copper processing (including copper wire, copper strip, copper foil, copper tube, copper rod, etc.) enterprises, with total assets of 400.4 billion yuan, debt ratio of 59.4%, and main business income of 1,007.1 billion yuan. The main business income of the national copper industry is 1,924.5 billion yuan. Compared with the entire non-ferrous metal industry, the copper industry assets account for 23% of the national non-ferrous industry total, and the revenue accounts for 35%.

China's total copper industry reserves are 30 million tons, accounting for 4% of the world's total, ranking sixth in the world; copper mine production is 1.61 million tons, accounting for 10% of the world's total, ranking second in the world. The following three categories are ranked first in the world, with copper concentrate production of 7.66 million tons, accounting for 34% of the world's total; copper concentrate consumption of 10.3 million tons, accounting for 46% of the world's total; copper production of 16.82 million tons, 65% globally.
At present, the distribution of copper mines in China is mainly from the original five bases, and gradually expands to the western regions, such as Inner Mongolia, Xinjiang, Tibet and so on. In addition to the four major resource bases in the copper smelting industry, the proportion of copper smelting distribution in coastal areas (Shandong and Guangxi) is increasing. The distribution of copper processing industry is partly transferred from developed provinces to central regions and upstream production bases.

Since 2010, some changes have taken place in the investment in the copper industry. The investment in mines is relatively stable. In 2014, the investment in copper mines was larger than that in smelting. In recent years, the investment has remained at around 25 billion yuan;The smelting investment reached a peak of 33.8billion yuan in 2011, and then the investment decreased significantly., was 19 billion yuan in 2016; the investment hotspot in the copper processing industry did not decrease, reaching 52 billion yuan in 2016, and the entire copper industry invested 95.3 billion yuan in 2016, accounting for 15.3% of the country.

Development Status of China's Copper Processing Industry

In terms of production, the data shows that from 2000 to 2016, the average annual growth rate of copper production was 15.8%, much higher than the growth rate of copper mines and refined copper. However, in recent years, the growth rate has dropped significantly. In the past three years, the average annual growth rate has been 7.2%. Statistics show that copper production in 2016 was 16.82 million tons, 10 times that of 2000. According to the statistics of China Nonferrous Metals Industry Association, the copper output from January to June 2017 was 10.14 million tons, a year-on-year increase of 7.66%. From 2000 to 2016, the growth rates of copper mines and refined copper production were 6.6% and 11.3%, respectively; from January to June 2017, the year-on-year growth rates of copper mines and refined copper were 4.09% and 7.16%, respectively.

The major producers of copper processing in the world are the United States, Japan, Germany, South Korea, Italy and China. In 2001, China's copper production accounted for 14% of the world's total, ranking third. By 2016, this proportion had risen to 65%.

In the past decade  , the proportion of wire rods (3694, 0.00, 0.00%) in China 's domestic copper processing product structure has shown an upward trend. As of 2016, the proportion of copper wire rods increased from 38% in 2010 to 44%; and the proportion of plate and stripe in 2016 decreased by 3% compared with 2010；

In terms of import and export trade, ①China's copper  has been showing  net imports for many years, but the net import volume has been decreasing year by year.  In 2004, the net import volume reached 800,000 tons, and then the import and export volume of copper materials has been declining, with a net import volume of 110,000 tons in 2016.. From January to May 2017, the net import volume was 25,000 tons. From the product point of view, except for copper pipes, which are net exports, all other products are net imports.

Copper pipe is the fastest growing variety of copper products in China. The average annual growth rate from 2000 to 2016 was 20%. In 2016, China's copper pipe production capacity was 3.2 million tons, the output was 2.8 million tons, and the capacity utilization rate was 87.5%. It is also copper processing. Product capacity utilization rate is the highest. The top 10 production enterprises have a production capacity of 1.51 million tons, accounting for 47%; the output is 1.05 million tons, accounting for 37.5%, and the industry concentration is relatively high. Beginning in 2003, copper pipes have been a net export. In recent years, China's copper pipe export volume has been between 150,000 and 170,000 tons, and its import volume has been 15,000 tons.
From 2010 to 2016, the output of copper plate and strip in China increased by 7.2% annually, and it was 3.25 million tons in 2016, becoming the second largest category of copper processing products, with a low industrial concentration. The output of 16 representative enterprises totaled 874,000 tons, accounting for 27% of the country. The scale of the enterprise is relatively small, and the capacity utilization rate is expected to be 67%. This shows that the market share is concentrated in the dominant enterprises, the overcapacity of ordinary products is serious, the market competition is fierce, and the processing fee is declining. Copper plate and strip are China's net imported copper processing products, but the net import volume is decreasing. The largest import volume in 2006 was 330,000 tons. In recent years, the import volume has been around 130,000 tons, while the export volume has been maintained at around 30,000 tons. No major breakthrough.

Due to the development of new energy vehicles, the demand for lithium battery copper foil has increased sharply, resulting in a shortage of copper foil market supply in 2016, which has become the most popular variety in the market. From 2010 to 2016, the average annual output of copper foil increased by 10.4%, of which the output in 2016 was 291,600 tons, an increase of 22.3%; it is expected that the output of copper foil in 2017 will reach 358,000 tons, a year-on-year increase of 22.7%. Among them, the output of copper foil for lithium batteries was 58,800 tons in 2016, accounting for 20% of the total copper foil output, while this proportion was only 6% in 2011. The main copper foil production enterprises have a high degree of industrial concentration, and 11 enterprises have an output of more than 10,000 tons, accounting for nearly 90% of the national output. Over the years, China's copper foil has still relied on net imports, with an annual import volume of 130,000 tons and an export volume of 20,000 to 30,000 tons. On the other hand, copper clad laminates are in the state of import and export. In recent years, 80,000 tons have been

imported and 100,000 tons have been exported.

In 2016, the copper rod production capacity was 11.2 million tons, the output was 6.7 million tons, and the capacity utilization rate was 60%. There were 20 production companies with a production capacity of more than 200,000 tons, the largest company with a production capacity of 1 million tons, and the top 10 companies in 2016. The production capacity of 4.06 million tons , The output is nearly 3 million tons, the capacity utilization rate is 74%, and the output accounts for 44.5% of the national total.

Development Trend of China's Copper Processing Industry

The development trend of China's copper processing industry presents the following characteristics:

First, the industrial layout is scattered. In the future, in addition to the distribution of copper processing bases in developed provinces and coastal areas, investment in copper processing

industrial bases will be increased in areas where copper resources are distributed, especially in the western region.

Second, the concentration of industry has increased. . In the future, the competition in the industry will be fierce. On the one hand, industry mergers and reorganizations will increase the elimination of backward enterprises. On the other hand, new entrants join in to enhance the competitiveness of the industry and improve the concentration of the industry through new materials, new technologies, new markets and other advantages

Third, there is still room for market demand. In the future, the market will show high, medium and low demand at different levels. The growth of medium and low demand will be slow, and the demand for high-end products will maintain rapid growth. The trend of homogeneity is obvious, and the market competition is fierce.

Fourth, large copper processing enterprises will develop towards large-scale and internationalization, and small and medium-sized enterprises will develop towards specialization and characteristics

Fifth, the pace of "going out" has been accelerated. Accelerate international cooperation by taking advantage of the opportunity of the country to promote the development of the "Belt and Road". It is mainly reflected in three aspects: expanding product exports, overseas mergers and acquisitions, and overseas investment and construction of factories

Sixth, the upgrading of industrial technology. "Internet +" promotes industrial upgrading and technological progress, and the promotion of the integration of industrialization and industrialization in the copper processing industry will highlight the competitiveness of the industry.

Seventh, present the development model of the park. Implementing the concept of green development, existing copper processing enterprises have retreated from the city and entered the park, and new enterprises have been deployed in high-tech zones or new material bases, etc., and the government's service function for enterprise development has also been strengthened.
Eighth, strengthen industry-university-research cooperation. In order to expand the drive for innovation and strengthen scientific and technological research, enterprises will cooperate more with universities and research institutions to strengthen cooperation in various aspects.

Key tasks for the development of China's copper industry

The key to the development of China's copper industry is innovation and development. In terms of model, large enterprises are encouraged to merge and reorganize, build mixed ownership enterprises with multiple economic components, establish large copper processing enterprises and R&D bases, and establish an international brand strategy. In terms of science and technology, it is necessary to focus on scientific and technological breakthroughs such as cleaner production, energy saving and emission reduction, and ecological protection, carry out research on new materials, promote the deep integration of the two, and expand the application of scientific and technological research in new fields to meet the application of green materials. The industry can promote the implementation of "Internet + Copper", accelerate the development of intelligent enterprises, and promote industrial upgrading. In terms of management, it is necessary to strengthen the control of corporate strategic control, investment decision-making, financial management, capital operation, talent management, etc., to achieve refined and standardized management of all aspects of production and operation. In terms of system, the incentive mechanism, restraint mechanism, competition mechanism and development mechanism can maximize the enthusiasm, initiative and creativity of employees, correctly guide and motivate employees' behavior, stimulate employees' continuous enterprising spirit, and continuously accumulate the stamina for enterprise development.

The second is development. The copper industry should use the "One Belt, One Road" vision to "go out" in the mode of industrial chain. Under the framework of the “One Belt, One Road” strategy, it supports the “going out” model of industrial chains such as exchanging products for resources and laying out material bases through infrastructure construction, and unified coordination at the national level to introduce strategic partners for “going out” enterprises. At the same time, ②we will accelerate the pace of "going out" of the copper processing industry, improve the "going out" service guarantee mechanism for the material industry, and strengthen policy coordination and support in economic and trade, foreign exchange, finance and taxation, customs, and foreign affairs. It is also necessary to encourage advantageous enterprises to participate in international mergers and acquisitions, participate in the research and development of new materials, formulate international standards for products, and introduce advanced international technologies.

Again, coordinated development. Establish a reputation system for the upstream and downstream industries of the copper industry, information communication, resource sharing, coordination and support, and win-win development; establish a logistics, recycling, and product research and development system; strictly implement the "Environmental Law" and establish an online pollutant discharge monitoring system to ensure a beautiful ecological environment for production and living; enterprise construction and urban planning Connection should also pay attention to the interests and demands of community residents and balance the relationship between all stakeholders.

Finally, for shared development, copper processing enterprises should pay attention to promoting corporate social responsibility strategies and fulfill their responsibilities to users, employees, communities and the environment. Improve the infrastructure where the enterprise is located and the production and living conditions of the people around the mining area, and attract local employees. Realize that the enterprise can feed back the society, improve the living standards of the people in the area where the enterprise belongs, and promote the common development of the region.